The globalization of markets refers to the merging of national market of different historic district in to one larger global marketplace. Whenever a company embraces globalization, there is need to understand international measurement issues. Riordan Plastic plan to embrace globalization will require putting effort to understand international measurements that are likely to affect the company. Globalization of production which will be the key factor in Riordan globalization plan involve sourcing services from one location with aim of taking advantage of national differences that exist in cost of factors or production mainly labor, land and capital.
Riordan business strategy after embracing globalization will have to focus on internal measurement issues. This will tend to focus more on return on investment, budget analysis and long term comparison. Therefore, instead of the company using the their resources to boost profit margins as it was the case when the company began, the focus will shift now to concentrating most resources on customer satisfaction and rate of return. To better achieve this new goals and guidelines the business will also need to prepare a budget analysis and a historical comparison sheet to assist in monitoring global success.
An effective business strategy for a company that has joined the international market like Riordan will be measured by its competitive advantage. Competitive advantage will easily be achieved by the company if its focus its strategy to include differentiating their products by the market. Meaning that , the company products have to meet the needs of the customers. Further, product differentiating can be achieved by introducing cost leadership, product focus and differentiating tactics which are in line to the industry the company is in. competitive advantage can also be attained by also using farsighted capacity planning which requires proper usage of the breakeven analysis of a financial statement.